Financial Services Procurement and Payment Services Purchasing Payment

Financial Services Procurement and Payment Services Purchasing & Payment Fundamentals September 19, 2014 Training Objective Provide an introductory overview of the University’s policies and procedures for purchasing and payment of goods and services.

Agenda 1 Purchasing and Payment within the University 2 Policy Overview 3 Purchasing Methods at the University 4 Purchasing Ethics 5 Useful Websites 6 Help References 7 Additional Training Opportunities 2

University Overview for Purchasing and Payment Activities Center-Led Model • • • Department Heads - Local Business Centers (LBC) & Auxiliaries - Reside within some (not all) campus units Responsible for local purchasing and payment transaction processing Delegated Procurement Centers - • Authorized to make purchase order commitments up to $25 k Ensure University procedures are followed for all departmental purchases Some specific functional areas have formal delegated authority to negotiate/contract on behalf of the University (e. g. – Facilities, HR, etc) Delegations are issued to recognize specific functional expertise Procurement and Payment Services - Resides within the Financial Services unit of Finance & Administration Responsible for University-wide policy, procedures, systems & strategy Provide University-wide support and oversight for large transactions Transactional processing for campus units without internal processing capabilities 3

Procurement and Payment Services http: //finserv. uchicago. edu/purchasing/index. shtml 4

Agenda 1 Purchasing and Payment within the University 2 Policy Overview 3 Purchasing Methods at the University 4 Purchasing Ethics 5 Useful Websites 6 Help References 7 Additional Training Opportunities 5

Procurement and Disbursements Policy Overview Policy Name 1201 Authority and Responsibility for Procuring Goods and Services 1202 Travel Policies and Procedures 1203 Approval of Non-Payroll Expenditures 1204 Non-Audit Services by University Auditors 1205 Minority-Owned, Women-Owned, and Small Business Enterprises Procurement Policy 1206 Gifts to Other Not-for-Profit and Charitable Organizations 1207 Institutional Membership Fees and Dues 1208 Individual Professional, Business and Technical Organization Membership Fees and Dues 1209 Membership Fees and Dues for Social, Dining, Airline and Hotel Clubs 1210 Parking Fees 1211 Gifts Based on University/Employee Relationships 1212 Gifts to Non-Employees 1213 Authority to Lease, Buy, and Sell Real Estate 1214 Non-Salary Cash Advances 1215 Retention of Outside Legal Counsel 1216 Authority for Settlement of Workers’ Compensation and Liability Claims 1217 Donor and Volunteer Gift Policy http: //finserv. uchicago. edu/support/policies/ 6

Policy 1201 Highlights • The Executive Vice President for Administration and Chief Financial Officer is vested with the responsibility for the procurement of all goods and services • The Executive Director of Procurement and Payment Services and Associate Vice President for Finance are responsible to establish and maintain policies and procedures • All University procurement policies shall be in compliance with Federal regulations for procurement standards (OMB Circular No. A-110) • Certain officers and departments have been delegated Procurement Authority (Procurement Centers) • The Executive Vice President for Administration and Chief Financial Officer has final signature approval for all purchases in excess of $200, 000 • Department Heads have authorization to issue University purchase orders up to $25, 000 through Buy. Site • The University will reimburse individuals for business related expenses (non -travel) up to $500 7

Delegated Procurement Centers Position Description of Goods or Services Maximum Signature Authority Per Transaction Associate Vice President for Finance Accounting and Banking Services $100, 000 Associate Vice President, Facilities Services Contracts for construction and renovation Associate Vice President, Facilities Services Contracts for all other goods and services, management services, rentals, and maintenance contracts $200, 000 Director, Residence Halls and Commons Construction, renovation, maintenance, equipment, food services and furnishings for assigned residence hall and commons areas $100, 000 Chief Information Officer Information Technology related goods and services $200, 000 Director, Library Books, publications and related items $100, 000 Director, University Press Printing and related supplies/services, marketing/advertising for publications $200, 000 Director, Laboratory Schools Books, supplies, athletic clothing, food services $100, 000 Assistant Vice President for Risk Management and Audit Liability, property and related insurance coverages $100, 000 Associate Vice President for Human Resources Personnel and Benefits Services $100, 000 $5, 000 8

Agenda 1 Purchasing and Payment within the University 2 Policy Overview 3 Purchasing Methods at the University 4 Purchasing Ethics 5 Useful Websites 6 Help References 7 Additional Training Opportunities 9

Purchasing Channels at the University Purchasing Channel P. O. Channels Catalog Purchase Order (processed in Buy. Site) Non-Catalog Purchase Order (processed in Buy. Site) Manual Purchase Order (use Purchase Form 100) Non-P. O. Channels Check Request (processed in e. Payment) Travel/Procurement Card Purchases (reconciled in the GEMS system) Employee Out-of-Pocket Expenses (reconciled in the GEMS system) General Usage • Commonly purchased goods or services • PPS has established catalogs in Buy. Site • General purchase order items not available in a Buy. Site catalog • Request contract creation/review • Establish Blanket or Standing Orders • Payment vehicle for various non-PO items • After-the-Fact Channel (already have invoice) • Travel Expenses • Low $ Business Expenses • Not a preferred method • Policy 1201 limits to $500 and below Visit the Preferred Purchasing Methods matrix on the Financial Services website for guidance on the proper Purchasing Method to use 10

What is a Purchase Order? • • • A purchase order is a form of contract It contains terms and conditions of sale that protect the University A purchase order is used to procure goods and services and authorizes a supplier to begin work – it is created “Before-the-Fact” It is generated based upon a pre-approved requisition Provides a single reference number (PO number) to relate all billing to for the University and supplier Enables the ability to match resulting invoice with originally agreed upon pricing 11

General Purchasing Guidelines • • • Treat purchases as if spending your own money – compare sources, prices, time of delivery, references from other users at the University If not comfortable in making a spending decision – engage someone from your LBC, a Procurement Center or PPS Documentation requirements for Purchases: - • Purchases <$5 k – Item description and price documentation Purchases $5 k - $25 k – Price Reasonableness must be documented Purchases >$25 k – PPS must be engaged Use the University Preferred Supplier Contracts when purchasing common items – the cost analysis and price justification are already done for you 12

Buy. Site Catalog Purchase Requisitioning Buy. Site Purchase Orders – PO with numbering format Gxxxxxx 13

Buy. Site Non-Catalog Purchase Requisitioning Buy. Site Purchase Orders – PO with numbering format Gxxxxxx 14

Purchase Request Form 100 Purchase Orders – PO with numbering format Uxxxxxx 15

Example of a Manual Purchase Order (Front - Internal) 16

Example of a Manual Purchase Order (Front - Vendor) 17

Example of a Manual Purchase Order (Back) 18

e. Payment 19

General e. Payment Guidelines • Ensure to use the vendor’s Remit To address from the invoice (this is the address where the payment is to be sent) • Only the actual invoice number should be entered into the “Invoice Number” field – do not enter account numbers or other information “Mail with Enclosure” & “Hold at Bursar” should only be used when absolutely necessary – these require significant manual effort to pull checks out of the normal distribution process Ensure to attach all supporting documentation required for processing the payment and documenting the business purpose • • 20

GEMS Program 21

General Expense Reimbursement Guidelines • All employee reimbursements must be processed through the GEMS system • All transactions must be accounted for in GEMS whether or not a receipt is required (e. g. - business purpose, date and amount) Receipts are required for all expense of $75 or more • - • • • Exception: Receipts required for all “Business Meal” and “Hotel/Lodging” expenses regardless of dollar value (IRS requirement) Receipts must sufficiently detail the item(s) that were purchased Business Meal expenses must include the name of participants (if over 10 participants – list of groups attending is sufficient) Proof of payment is required – receipt or bill must show that payment has been made - Restaurant check stubs (pull tabs) are not sufficient Invoices without payment confirmation are not sufficient 22

Agenda 1 Purchasing and Payment within the University 2 Policy Overview 3 Purchasing Methods at the University 4 Purchasing Ethics 5 Useful Websites 6 Help References 7 Additional Training Opportunities 23

Purchasing Ethics “As a basic condition of employment, all University staff employees have a duty to act in the University’s best interest in connection with matters arising from or related to their employment and other University activities. ” - Conflict of Interest Policy (U 600) • Avoid conflicts of interest (even situations that cause a perception of conflict) – when unavoidable ensure you properly disclose to management. Some examples: - • • External activities or financial interests Providing services to outside organizations with University time or resources Family relationships with University suppliers Maintain confidentiality of confidential information entrusted to you Exercise good judgment in giving or receiving gifts or entertainment “Disclosure is a key factor in protecting one’s reputation and career from embarrassing or harmful allegations of inappropriate conduct. ” 24

Agenda 1 Purchasing and Payment within the University 2 Policy Overview 3 Purchasing Methods at the University 4 Purchasing Ethics 5 Useful Websites 6 Help References 7 Additional Training Opportunities 25

Useful Websites • • • Procurement and Payment Services Website - http: //finserv. uchicago. edu/purchasing/index. shtml Procurement and Payment Services Staff Directory - http: //finserv. uchicago. edu/about/index. shtml Procurement and Disbursement Policies - http: //finserv. uchicago. edu/support/policies/ Preferred Supplier Contracts - http: //finserv. uchicago. edu/purchasing/lookup/index. shtml Preferred Purchasing Methods Matrix - http: //finserv. uchicago. edu/purchasing/preferred/index. shtml Buy. Site Program Website - http: //finserv. uchicago. edu/purchasing/po/buysite. shtml e. Payment Website - http: //finserv. uchicago. edu/purchasing/check/epayment. shtml GEMS Program Website - https: //gems. uchicago. edu/ UChicago Travel Website - http: //finserv. uchicago. edu/purchasing/travel/index. shtml 26

Agenda 1 Purchasing and Payment within the University 2 Policy Overview 3 Purchasing Methods at the University 4 Purchasing Ethics 5 Useful Websites 6 Help References 7 Additional Training Opportunities 27

Other Sources of Help • • Procurement and Payment Services Support: - PPS Website: http: //finserv. uchicago. edu/purchasing/index. shtml PPS Help Desk Phone: 773. 702. 3320 PPS Help Desk Email Support: pps@uchicago. edu JPMorgan Chase (lost or stolen card) - Domestic: 800. 316. 6056 International: 847. 488. 3748 28

Agenda 1 Purchasing and Payment within the University 2 Policy Overview 3 Purchasing Methods at the University 4 Purchasing Ethics 5 Useful Websites 6 Help References 7 Additional Training Opportunities 29

Additional Training Opportunities • Buy. Site Fundamentals (Instructor Led) - https: //training. uchicago. edu/course_detail. cfm? course_id=876 • Introduction to Buy. Site (online) - http: //hrservices. uchicago. edu/training/videos/Buy. Site_00_Opening/ • e. Payment Request – Requestor and Approver Training (Instructor Led) - https: //training. uchicago. edu/course_detail. cfm? course_id=1274 • GEMS System – New User (Instructor Led) - https: //training. uchicago. edu/course_detail. cfm? course_id=681 • GEMS System – User Guide (online) - https: //gems. uchicago. edu/resources/forms/GEMS_CTE_Quick. Start. pdf • GEMS System – Concur Travel – Quick Reference Guide (online) - https: //gems. uchicago. edu/resources/forms/UC%20 Cliqbook%20 Quick%20 Reference %20 Guide. pdf • GEMS System – Expense Reporting - Quick Reference Guide (online) - https: //gems. uchicago. edu/resources/forms/GEMS_Quick. Ref. pdf 30

QUESTIONS & DISCUSSION THANK YOU 31